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January 25, 2012

Government cut to solar tariffs blocked as appeal fails

The government has failed in an appeal against a decision which blocked its attempts to reduce solar subsidies.

The High Court case involved the government's move to halve the payments made to households with solar panels, which it says are unsustainable.

Solar businesses and campaigners had warned thousands of jobs could be lost as a result of the move.

Under the feed-in tariffs programme, people in Britain with solar panels are paid for the electricity they generate.

The decision means the current tariff of just over 43p is likely to remain in place until 3 March.

The new tariff of 21p per kilowatt-hour, down from the current 43p, had been expected to come into effect from 1 April.

But in October, the government said it would be paid to anyone who installed their solar panels after 12 December, sparking anger from environmental groups and installers.

The tariff for surplus electricity exported to the national grid remains 3.1p per kilowatt-hour.

The government announced a consultation on the proposals, which closed on 23 December. The High Court ruled that changing the tariffs before the end of an official consultation period was "legally flawed".

A DECC spokesperson said: "The Court of Appeal has upheld the High Court ruling on FITs. We are now considering our options."